While spending money to save money may sound counterintuitive, there are debit card features that make it possible to do just that.
The most obvious advantage debit cards have over credit cards or even prepaid options is that there are no interest rates to deal with and no fees for depositing extra money into the account.
In fact, most banks use financial incentives and account features to encourage customers to put more into their debit card accounts.
The St George Complete Freedom account, for instance, waives the monthly fee if $2000 or more is deposited in that time, while the HSBC Day To Day has a promotion for new account holders that gives them a bonus $10 every time they deposit $2000 or more in a month (up to $100 for the year).
But it is not just these features that make debit cards a useful tool for maximising your savings, and here we take a look at three other ways you can use your debit card to spend and save.
One of the easiest ways to rein in spending and get more in your savings is to use your debit card account to track spending.
This can help you get an idea of where you spend the most money and what expenses could be reduced or cut out to help you save.
Some debit card accounts even have special features to make tracking and budgeting easier, like the St George SENSE account, which categorises spending and automatically rounds up purchases so that the extra cents go into a joint savings account.
Use Cash As An “Allowance”
People are using cash less and less but it could be a useful budgeting tool to keep cash on hand.
If you are planning a big night out, for example, it may be easier to keep track of the money if you withdraw cash beforehand. It also reduces the chances of overspending at one-off events, whether it is a night out, a festival or an excursion to some local markets.
Bulk And Group Buying
Buying in bulk is a great way to save but can often mean spending more to save more in the future and debit cards help by giving you access to all your everyday funds.
The key to making bulk-shopping work, regardless of the size of your household, is to stick to items that you actually need. Another way to go about it is to buy things as a group and split the costs.
Cinemas and event companies often give discounts to groups, and by using your debit card you can get the price you want instantly.
There are endless ways to spend and save money, but fortunately debit card benefits are just as infinite.
Thinking about the ways you can make debit cards part of your savings plan and using tips like the ones above will help you find the best system for any financial goals.